Loading...
HomeMy WebLinkAbout2023-06-05 Resolution 2023-231_Urban Renewal Plan, Kettlestone Phase 3 CommercialRESOLUTION NO. 2023-231 RESOLUTION DETERMINING AN AREA OF THE CITY TO BE AN ECONOMIC DEVELOPMENT AREA, AND THAT THE REHABILITATION, CONSERVATION, REDEVELOPMENT, DEVELOPMENT, OR A COMBINATION THEREOF, OF SUCH AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY OR WELFARE OF THE RESIDENTS OF THE CITY; DESIGNATING SUCH AREA AS APPROPRIATE FOR URBAN RENEWAL PROJECTS; AND ADOPTING THE KF,TTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL PLAN WHEREAS, it is hereby found and determined that one or more economic development areas, as defined in Chapter 403, Code of Iowa, exist within the City and the rehabilitation, conservation, redevelopment, development, or combination thereof, of the area is necessary in the interest of the public health, safety, or welfare of the residents of the City; and WHEREAS, this Council has caused there to be prepared a proposed Kettlestone Phase 3 Commercial Urban Renewal Plan ("Plan" or "Urban Renewal Plan") for the Kettlestone Phase 3 Commercial Urban Renewal Area ("Area" or "Urban Renewal Area"), which proposed Plan is attached hereto as Exhibit 1 and which is incorporated herein by reference; and WHEREAS, the purpose of the Plan is to form the Kettlestone Phase 3 Commercial Urban Renewal Area as an area suitable for economic development and to include a list of proposed projects to be undertaken within the Urban Renewal Area, and a copy of the Plan has been placed on file for public inspection in the office of the City Clerk; and WHEREAS, the property proposed to be included in the Urban Renewal Area is legally described in the Plan and this Council has reasonable cause to believe that the Area described in the Plan satisfies the eligibility criteria for designation as an urban renewal area under Iowa law and; and WHEREAS, it is desirable that the area be redeveloped as part of the overall redevelopment covered by the Plan, and WHEREAS, the proposed Urban Renewal Area includes land classified as agricultural land and consequently written permission of the current owners has been obtained; and WHEREAS, it is desirable that the Urban Renewal Area be redeveloped as described in the proposed Urban Renewal Plan to be known hereafter as the "Kettlestone Phase 3 Commercial Urban Renewal Plan"; and WHEREAS, the Iowa statutes require the City Council to submit the proposed Urban Renewal Plan to the Planning and Zoning Commission for review and recommendation as to its conformity with the general plan for development of the City as a whole, prior to City Council approval thereof, and WHEREAS, creation of the Urban Renewal Area and adoption of the Urban Renewal Plan therefore has been approved by the Planning and Zoning Commission for the City as being in conformity with the general plan for development of the City as a whole, as evidenced by its written report and recommendation tiled herewith, which report and recommendation is hereby accepted, approved in all respects and incorporated herein by this reference; and WHEREAS, by resolution adopted on May 1, 2023, this Council directed that a consultation be held with the designated representatives of all affected taxing entities to discuss the proposed Urban Renewal Plan and the division of revenue described therein, and that notice of the consultation and a copy of the proposed Urban Renewal Plan be sent to all affected taxing entities; and WHEREAS, pursuant to such notice, the consultation was duly held as ordered by the City Council and all required responses to the recommendations made by the affected taxing entities, if any, have been timely made as set forth in the report of the Director of Economic Development, or her delegate, filed herewith and incorporated herein by this reference, which report is in all respects approved; and WHEREAS, by resolution this Council also set a public hearing on the adoption of the proposed Urban Renewal Plan for this meeting of the Council, and due and proper notice of the public hearing was given, as provided by law, by timely publication in the Dallas County News, which notice set forth the time and place for this hearing and the nature and purpose thereof, and WHEREAS, in accordance with the notice, all persons or organizations desiring to be heard on the proposed Urban Renewal Plan, both for and against, have been given an opportunity to be heard with respect thereto and due consideration has been given to all comments and views expressed to this Council in connection therewith and the public hearing has been closed. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF WAUKEE, STATE OF IOWA: Section 1. That the findings and conclusions set forth or contained in the proposed Kettlestone Phase 3 Commercial Urban Renewal Plan" for the area of the City of Waukee, State of Iowa, legally described and depicted in the Plan and incorporated herein by reference (which area shall hereinafter be known as the "Kettlestone Phase 3 Commercial Urban Renewal Area"), be and the same are hereby adopted and approved as the findings of this Council for this area. Section 2. This Council further finds: a) Although relocation is not expected, a feasible method exists for the relocation of any families who will be displaced from the Urban Renewal Area into decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such families; b) The Urban Renewal Plan conforms to the general plan for the development of the City as a whole; and c) Acquisition by the City is not immediately expected, however, as to any areas of open land to be acquired by the City included within the Urban Renewal Area: i. Residential use is not expected, however, with reference to any portions thereof' which are to be developed for residential uses, this City Council hereby determines that a shortage of housing of sound standards and design with decency, safety and sanitation exists within the City; that the acquisition of the area for residential uses is an integral part of and essential to the program of the municipality; and that one or more of the following conditions exist: a. That the need for housing accommodations has been or will be increased as a result of the clearance of slums in other areas, including other portions of the urban renewal area. b. That conditions of blight in the municipality and the shortage of decent, safe and sanitary housing cause or contribute to an increase in and spread of disease and crime, so as to constitute a menace to the public health, safety, morals, or welfare. c. That the provision of public improvements related to housing and residential development will encourage housing and residential development which is necessary to encourage the retention or relocation of industrial and commercial enterprises in this state and its municipalities. d. The acquisition of the area is necessary to provide for the construction of housing for low and moderate income families. ii. Non-residential use is expected and with reference to those portions thereof which are to be developed for non-residential uses, such non-residential uses are necessary and appropriate to facilitate the proper growth and development of the City in accordance with sound planning standards and local community objectives. Section 3. That the Urban Renewal Area is an economic development area within the meaning of Chapter 403, Code of Iowa; that such area is eligible for designation as an urban renewal area and otherwise meets all requisites under the provisions of Chapter 403, Code of Iowa; and that the rehabilitation, conservation, redevelopment, development, or a combination thereof, of such area is necessary in the interest of the public health, safety or welfare of the residents of this City. Section 4. That the Urban Renewal Plan, attached hereto as Exhibit I and incorporated herein by reference, be and the same is hereby approved and adopted as the "Kettlestone Phase 3 Commercial Urban Renewal Plan for the Kettlestone Phase 3 Commercial Urban Renewal Area"; the Urban Renewal Plan for such area is hereby in all respects approved; and the City Clerk is hereby directed to file a certified copy of the Urban Renewal Plan with the proceedings of this meeting. Section 5. That, notwithstanding any resolution, ordinance, plan, amendment or any other document, the Urban Renewal Plan shall be in full force and effect from the date of this Resolution until the Council amends or repeals the Plan. Said Urban Renewal Plan shall be forthwith certified by the City Clerk, along with a copy of this Resolution, to the Recorder for Dallas County, Iowa, to be filed and recorded in the manner provided by law. PASSED AND APPROVED this 5 h day of June, 2023. 5� 6 Mayor Pr ern ATTEST: Lt� City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman Pierce X R. Charles Bottenberg X Chris Crone X Larry R. Lyon X Ben Sinclair X KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL PLAN for the KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL AREA (North of Westown Parkway -West) CITY OF WAUKEE, IOWA June 2023 TABLE OF CONTENTS SECTION A. INTRODUCTION B. DESCRIPTION OF THE PHASE) URBAN RENEWAL AREA C. AREA DESIGNATION D. BASE VALUE E. DEVELOPMENT PLAN F. PLAN OBJECTIVES G. TYPES OF RENEWAL ACTIVITIES H. ELIGIBL,E URBAN RENEWAL, PROJECTS I. FINANCIAL INFORMATION J. URBAN RENEWAL FINANCING K. PROPERTY ACQUISITION/DISPOSITION L. RELOCATION M. PROPERTY WITHIN AN URBAN REVITALIZATION AREA N. STATE AND LOCAL REQUIREMENTS O. SEVERABILITY P. URBAN RENEWAL PLAN AMENDMENTS Q. EFFECTIVE PERIOD R. AGREEMENT TO INCLUDE AGRICULTURAL LAND EXHIBITS A. LEGAL DESCRIPTION OF KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL AREA B. KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL AREA MAP C. AG LAND CONSENT AGREEMENT Kettlestone Phase 3 Commercial Urban Renewal Plan for the Kettlestone Phase 3 Commercial Urban Renewal Area (North of Westown Parkway- West) City of Waukee, Iowa A. INTRODUCTION The Kettlestone Phase 3 Commercial Urban Renewal Plan ("Phase 3 Plan" or "Phase 3 Urban Renewal Plan") for the Kettlestone Phase 3 Commercial Urban Renewal Area ("Phase 3 Area" or "Phase 3 Urban Renewal Area") has been developed to help local officials promote commercial and industrial economic development in the City of Waukee, Iowa (the "City"). In order to achieve this objective, the City intends to undertake urban renewal activities pursuant to the powers granted to it under Chapter 403 of the Code of Iowa, as amended. B. DESCRIPTION OF THE PHASE 3 URBAN RENEWAL AREA The Phase 3 Urban Renewal Area is described in Exhibit "A" and illustrated in Exhibit "B." The City reserves the right to modify the boundaries of the Area at some future date. C. PHASE 3 AREA DESIGNATION With the adoption of this Phase 3 Plan, the City designates this Phase 3 Urban Renewal Area as an area appropriate for the promotion of economic development (commercial and industrial development). D. BASE VALUE If the Phase 3 Urban Renewal Area is legally established, a Tax Increment Financing (TIF) Ordinance is adopted, and debt is certified prior to December 1, 2023, the taxable valuation as of January 1, 2022, will be considered the frozen "base valuation" of the taxable property within that area covered by the TIF ordinance. If a TIF Ordinance is not adopted until a later date, or debt is not first certified prior to December 1, 2023, the frozen "base value" will be the assessed value of the taxable property within that area covered by the TIF Ordinance as of January 1 of the calendar year preceding the calendar year in which the City first certifies the amount of any debt on the Phase 3 Area. E. DEVELOPMENT PLAN The City has a general plan for the physical development of the City as a whole, outlined in the Waukee Comprehensive Land Use Plan, adopted in 2019. The goals and objectives proposed in this Phase 3 Plan, and the urban renewal projects described herein, are in conformity with the land use policies and plans for the development of the City as a whole established in the Waukee Comprehensive Land Use Plan. The Phase 3 Urban Renewal Plan does not in any way replace the City's current land use planning or zoning regulation process. The land being included in the Phase 3 Urban Renewal Area is currently zoned as K-RR (Kettlestone Regional Retail District), but may be rezoned, if needed, in accordance with the City's standard zoning processes. The need, if any, for improved traffic, public transportation, public utilities, recreational and community facilities, or other public improvements within the Phase 3 Urban Renewal Area is set forth in this Phase 3 Plan. As the Phase 3 Area continues to develop, the need for public infrastructure extensions and upgrades will be evaluated and planned for by the City. F. PLAN OBJECTIVES Renewal activities are designed to provide opportunities, incentives, and sites to promote economic development (commercial and industrial). More specific objectives for the development, redevelopment, and rehabilitation within the Phase 3 Urban Renewal Area are as follows: 1. To achieve a diversified, well-balanced economy providing a desirable standard of living, creating job opportunities, and strengthening the tax base. 2. To plan for and provide sufficient land for commercial and industrial development in a manner that is efficient from the standpoint of providing municipal services. 3. To provide for the installation of public works and facilities including, but not limited to, water, sanitary sewer and other public improvements, which contribute to the revitalization of the area and to the sound development of the entire City. 4. To encourage commercial growth and expansion through governmental policies which make it economically feasible to do business. 5. To provide a more marketable and attractive investment climate through the use of various federal, state and local incentives. 6. To stimulate, through public action and commitment, private investment in new and expanded commercial and industrial development. 7. To improve the conditions and opportunities for economic development (commercial and industrial). 8. To help develop a sound economic base that will serve as the foundation for future growth and development. 9. To enhance the City by fostering an entrepreneurial climate, diversifying the local economy, encouraging opportunities for new businesses, and supporting retention of existing businesses. 10. To enhance the health, safety, living environment, general character, and general welfare of Waukee, Iowa. 11. To promote development utilizing any other objectives allowed by Chapter 403 of the Code of Iowa. G. TYPES OF RENEWAL ACTIVITIES To meet the objectives of this Phase 3 Urban Renewal Plan and to encourage the development of the Phase 3 Area, the City intends to utilize the powers conferred under Chapter 403 and Chapter 15A, Code of Iowa including, but not limited to, tax increment financing. Activities may include: To undertake and carry out urban renewal projects through the execution of contracts and other instruments. 2. To arrange for or cause to be provided the construction or repair of public infrastructure including but not limited to streets, curb and gutter, street lighting, water, sanitary sewer, public utilities or other facilities in connection with urban renewal projects. 3. To make loans, forgivable loans, grants, tax rebate payments or other types of economic development grants or incentives to private persons, local development organizations, or businesses for economic development purposes on such terms as may be determined by the City Council. 4. To borrow money and to provide security therefor. 5. To acquire or dispose of property. 6. To provide for the construction of specific site improvements such as grading and site preparation activities, access roads and parking, fencing, utility connections, and related activities. 7. To make or have made surveys and plans necessary for the implementation of the Urban Renewal Plan or specific urban renewal projects. 8. To use any or all other powers granted by the Urban Renewal Act to develop and provide for improved economic conditions for the City. Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A, Chapter 403, Chapter 42713, or any other provision of the Code of Iowa in furtherance of the objectives of this Urban Renewal Plan. H. ELIGIBLE URBAN RENEWAL PROJECTS Although certain project activities may occur over a period of years, the eligible urban renewal projects under this Phase 3 Urban Renewal Plan include: 1. Development Agreement with Iowa Youth Athletic Foundation and related entities: The City expects to enter into a Development Agreement (the "Agreement") with Caliber Land Company, LLC, Kettlestone Central, L.C., and Iowa Youth Athletic Foundation (collectively of purposes of this description the "Developers"), pursuant to which the Developers would cause the completion of a sports arena and commercial complex in four phases. For purposes of this Phase 3 Plan, the eligible urban renewal project is the completion of approximately $20,000,000 in commercial developments within the Phase 3 Area ("Phase 3 Commercial Improvements"), which development will further the purposes of the Phase 3 Plan. The City expects to provide Developers with Economic Development Grants in the form of rebates of incremental taxes generated by the Phase 3 Commercial Improvements, in an aggregate amount among all four phases of not to exceed $39,487,500. The Economic Development Grants will be subject to annual appropriation and the detailed terms and conditions in the Agreement. 2. Planning, Engineering Fees (for Urban Renewal Plans), Attorney Fees, Administrative, and Other Related Costs to Support Urban Renewal Projects and Planning: Project Estimated Date Estimated Cost to be Funded by TIF Funds Fees and Costs Undetermined Not to Exceed $1,000,000 I. FINANCIAL INFORMATION 1. July 1, 2022 Constitutional Debt Limit $127,379,974 2 Current Outstanding General Obligation Debt $101,657,587 3. Proposed amount of indebtedness to be incurred: A $40,487,500 specific amount of debt to be incurred for the Eligible Urban Renewal Projects has not yet been determined. This includes the cost incurred This document is for planning purposes only. The for all four phases of planned estimated project costs in this Plan are estimates only and development and does not include financing costs related will be incurred and spent over a number of years. In no to debt issuance, which may be event will the City's constitutional debt limit be incurred over the life of the exceeded. The City Council will consider each project Area. proposal on a case -by -case basis to determine if it is in the City's best interest to participate before approving an urban renewal project or expense. It is further expected that such indebtedness, including interest on the same, may be financed in whole or in part with tax increment revenues from the Phase 3 Urban Renewal Area. Subject to the foregoing, it is estimated that the cost of the Eligible Urban Renewal Projects as described above will be approximately as stated in the next column: J. URBAN RENEWAL FINANCING The City intends to utilize various financing tools, such as those described below to successfully undertake the proposed urban renewal actions. The City has the statutory authority to use a variety of tools to finance physical improvements within the Phase 3 Area. These include: A. Tax Increment Financing. Under Section 403.19 of the Code of Iowa, urban renewal areas may utilize the tax increment financing mechanism to finance the costs of public improvements, economic development incentives, or other urban renewal projects. Upon creation of a tax increment district within the Area, by ordinance, the assessment base is frozen and the amount of tax revenue available from taxes paid on the difference between the frozen base and the increased value, if any, is segregated into a separate fund for the use by the City to pay costs of the eligible urban renewal projects. The increased taxes generated by any new development, above the base value, are distributed to the taxing entities, if not requested by the City, and in any event upon the expiration of the tax increment district. B. General Obligation Bonds. Under Division III of Chapter 384 and Chapter 403 of the Code of Iowa, the City has the authority to issue and sell general obligation bonds for specified essential and general corporate purposes, including the acquisition and construction of certain public improvements within the Area or incentives for development consistent with this Plan. Such bonds are payable from the levy of unlimited ad valorem taxes on all the taxable property within the City. It may be, the City will elect to abate some or all of the debt service on these bonds with incremental taxes from this Area. The City may also determine to use tax increment financing to provide incentives such as cash grants, loans, tax rebates, or other incentives to developers or private entities in connection with the urban renewal projects identified in this Plan. In addition, the City may determine to issue general obligation bonds, tax increment revenue bonds or such other obligations, or loan agreements for the purpose of making loans or grants of public funds to private businesses located in the Area for urban renewal projects. Alternatively, the City may determine to use available funds for making such loans or grants or other incentives related to urban renewal projects. In any event, the City may determine to use tax increment financing to reimburse the City for any obligations or advances. Nothing herein shall be construed as a limitation on the power of the City to exercise any lawful power granted to the City under Chapter 15, Chapter 15A. Chapter 403, Chapter 427B, or any other provision of the Code of 1on,a in furtherance of the objectives of this Urban Renewal Plan. K. PROPERTY ACQUISITION/DISPOSITION The City will follow any applicable requirements for the acquisition and disposition of property within the Phase 3 Urban Renewal Area. L. RELOCATION The City does not expect there to be any relocation required of residents or businesses as part of the proposed urban renewal project; however, if any relocation is necessary, the City will follow all applicable relocation requirements. M. PROPERTY WITHIN AN URBAN REVITALIZATION AREA The Phase 3 Urban Renewal Area may (now or in the future) also be located within an established Urban Revitalization Area. Properties within the Phase 3 Urban Renewal Area shall not be eligible for tax abatement under an Urban Revitalization Plan without the City Council's specific approval. The City Council, at its sole discretion, shall determine which incentives are available through either: (a) this Plan for urban renewal incentives, if any urban renewal incentives are offered by the City, at the City Council's sole discretion; or (b) tax abatement incentives through the City's Urban Revitalization Plan(s); or (c) a combination of urban renewal incentives and tax abatement incentives. N. STATE AND LOCAL REQUIREMENTS The City will comply with all State and local laws related to implementing this Phase 3 Urban Renewal Plan and its supporting documents. O. SEVERABILITY In the event one or more provisions contained in the Phase 3 Urban Renewal Plan shall be held for any reason to be invalid, illegal, unauthorized, or unenforceable in any respect, such invalidity, illegality, un-authorization, or unenforceability shall not affect any other provision of this Phase 3 Urban Renewal Plan, and this Phase 3 Urban Renewal Plan shall be construed and implemented as if such provisions had never been contained herein. P. URBAN RENEWAL PLAN AMENDMENTS This Phase 3 Urban Renewal Plan may be amended from time to time for a number of reasons including, but not limited to, adding or deleting land, adding or amending urban renewal projects, or modifying goals or types of renewal activities. The City Council may amend this Phase 3 Plan in accordance with applicable State law. Q. EFFECTIVE PERIOD This Phase 3 Urban Renewal Plan will become effective upon its adoption by the City Council and shall remain in effect until terminated by the City Council. With respect to the property included within the Phase 3 Urban Renewal Area, which is also included in a Tax Increment Financing (TIF) ordinance which designates that property as a tax increment area and is designated based on an economic development finding, the use of incremental property tax revenues or the "division of revenue," as those words are used in Chapter 403 of the Code of Iowa, is limited to twenty (20) years beginning with the first calendar year following the calendar year in which the City first certifies to the County Auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment from the incremental property tax revenues attributable to that property within a TIF Ordinance of the Phase 3 Urban Renewal Area. The division of revenues shall continue on the Phase 3 Urban Renewal Area for the maximum period allowed by law. At all times, the use of tax increment financing revenues (including the amount of loans, advances, indebtedness, or bonds which qualify for payment from the division of revenue provided in Section 403.19 of the Code of Iovi,a) by the City for activities carried out under the Phase 3 Urban Renewal Area shall be limited as deemed appropriate by the City Council and consistent with all applicable provisions of law. R. AGREEMENT TO INCLUDE AGRICULTURAL LAND Because some of the area included in the Phase 3 Urban Renewal Area contains land that is defined as "agricultural land" by Iowa Code Section 403.17(3), the property owner has entered into an agreement in which the property owner agrees to allow the City to include real property defined as "Agricultural Land" in the Phase 3 Urban Renewal Area. A copy of the agreement is attached as Exhibit "C". The original signed agreement will be on file at the City Clerk's office. EXHIBIT A LEGAL DESCRIPTION OF KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL AREA PHASE 3 DEVELOPMENT PROPERTY (NORTH OF WESTOWN PARKWAY - WEST) Parcel 23-38 of the Plat of Survey recorded in Book 2023 Page 5013, City of Waukee, Dallas County, Iowa (Parcel # 1603100048) EXHIBIT B MAP OF KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL AREA EXHIBIT C AGREEMENT TO INCLUDE AGRICULTURAL LAND IN THE KETTLESTONE PHASE 3 COMMERCIAL URBAN RENEWAL AREA WHEREAS, the City of Waukee, Iowa, (the "City") has proposed to adopt the Kettlestone Phase 3 Commercial Urban Renewal Plan (the "Phase 3 Plan") for the Kettlestone Phase 3 Commercial Urban Renewal Area (the "Phase 3 Urban Renewal Area"), pursuant to Chapter 403 of the Code of Iowa, in order to undertake activities authorized by that Chapter; and WHEREAS, it has been proposed that the boundaries of the Phase 3 Urban Renewal Area will include certain property which is owned by the Agricultural Land Owner listed below (the "Property"); and WHEREAS, Section 403.17(10) of the Code of Iowa provides that no property may be included in an urban renewal area which meets the definition in that Section of"agricultural land," until the owners of such property agree to include such property in such urban renewal area; and WHEREAS, it has been determined that the portion of the Property owned by the Agricultural Land Owner below meets the definition of "agricultural land" in Section 403.17(3) of the Code of Iowa; NOW, THEREFORE, it is hereby certified and agreed by the Agricultural Land Owner as follows: 1. The Agricultural Land Owner hereby certifies that he/she is the owner of certain Property within the proposed Phase 3 Urban Renewal Area and agrees that the Ciry of Waukee, Iowa, may include such Property within the Phase 3 Urban Renewal Area. 2. The Agricultural Land Owner further authorizes the governing body of the City of Waukee, Iowa, to pass any resolution or ordinance necessary to designate said Property as part of the Phase 3 Urban Renewal Area under Chapter 403 of the Code of Iowa, and to proceed with activities authorized under said Chapter. DATED this 3C day of r`A , 2023. Land Owner's Name: Signature: Zdwlah tj Date: Witness: 02174496-1\21938-298 Final Version Agricultura d Owner's Name: T'-- Signature': 0 �5 E �•�,c�r, Date: 5 •3t' 3 Witness: Z --.�